RYSZARD JAXA-MALACHOWSKI / WARSAW

Both groups pinning hopes on domestic equipment purchase and modernisation orders

The new Polish government plans to consolidate the aerospace and defence industry into two specialised groups. One will cover the aviation and electronics sectors, while the other, larger group will include armoured vehicles, missile and ammunition manufacturers. The state import/export agencies are also expected to be involved.

The aviation/electronics group is to be created by the Polish industrial development agency ARP. It will consist of Poland's largest aviation manufacturer, PZL Mielec, in which ARP already holds a major stake; helicopter manufacturer PZL Swidnik; hydraulic systems specialist PZL Hydral; and Radmor, a communications equipment producer. The Cenzin import/export agency will also be involved.

The group is to be set up by year end, but the need to make changes in the ownership structure mean, that PZL Swidnik and PZL Hydral will join later.

Piston engine and machine tool manufacturer PZL Kalisz is not included and its future looks doubtful.

The future of military maintenance units currently subordinated to the defence ministry - and also omitted from the group - looks shaky as well. The 17 maintenance units, four of which are aviation-related, were to be privatised, but the defence and industry ministries have refused to comment.

The other, larger group will also contain some aviation elements, such as Radwar, which makes radars used by the armed forces. Again, Cenzin may be involved.

Both groups are pinning hopes on domestic orders. Government budget forecasts for the next few years include 600-700 million zloty ($150-175 million) set aside for equipment purchases and modernisation to be spent with domestic manufacturers.

But those plans will depend on the Polish economy improving. For the aviation group, continuing negotiations for a multirole fighter are key, as they could bring up to $1 billion in offset work - although proposed changes in Polish law could reduce this.

Source: Flight International